Guests at the Edgewater Inn and Suites in Pismo Beach were evacuated early Tuesday morning after a fire broke out in the hotel's carport.
Heavy smoke and fire were first reported in the carport at the hotel at 280 Wadsworth Ave. at 1:33 a.m., according to a news release from Cal Fire.
Fire sprinklers contained the fire to the carport until firefighters arrived, and there was no damage to the rest of the hotel.
An air conditioning unit cause the blaze, according to Cal Fire.
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Guests were allowed to return to their rooms shortly after 2 a.m.
Total damage was estimated at $10,000; with $3,000 in damage to the structure and $7,000 in damage to the contents of the carport.